Chicago-based crypto lender BlockFills has suspended client deposits and withdrawals following approximately $75 million in losses from its lending operations. CEO Nicholas Hammer stepped down in February 2026, with Joseph Perry appointed as interim CEO. The firm is now seeking a buyer amid a liquidity crisis.
BlockFills, a Chicago-based provider of liquidity, lending, and trading infrastructure for institutional crypto clients, announced significant financial troubles in early 2026. On February 11, 2026, the company suspended client deposits and withdrawals after reporting around $75 million in losses linked to its crypto lending activities. These losses stemmed from a decline in the value of crypto collateral backing loans during market downturns.
Nicholas Hammer, co-founder and CEO of BlockFills, stepped down in February 2026. Joseph Perry was appointed as interim CEO to lead the company through this period. Some clients had received prior warnings to withdraw their assets before the freeze took effect, but as of late February 2026, deposits and withdrawals remained halted.
The firm, which serves hedge funds, asset managers, and high-net-worth trading firms globally, is actively pursuing a buyer or strategic investor to address its liquidity issues. This situation echoes past failures in the crypto lending sector, such as those experienced by Celsius, Voyager, and Genesis, where falling asset prices led to collateral shortfalls and broader market stress.
BlockFills' challenges highlight ongoing vulnerabilities in institutional crypto markets, particularly during volatile price cycles that can strain liquidity and raise concerns about solvency and counterparty risk.
